Construction of a fourth housing development at the east Manchester site has started.
Great Places Housing Group has broken ground at a development of 18 homes on land off Cardroom Road and Weybridge Road.
The project is being delivered by a partnership consisting of Great Places Housing Group, developers Urban Splash, urban regeneration company New East Manchester, the HCA and the North West Development Agency.
The working name for the scheme is The Guts, derived from the site's central position in the 'belly' of the New Islington masterplan.
Eddie Smith, chief executive of New East Manchester, said: "Islington Square and Guest Street have already set new standards in social housing, creating stylish homes for local people. The Guts yet again raises the bar and I've no doubt this development will be equally popular with east Manchester residents and further improve the environment for the entire New Islington community."
The development will house all remaining residents who used to live in the area and want to return, as well as providing affordable opportunities for people who want to move to the regenerated community.
The Guts is the eighth scheme to have been developed at New Islington, including Great Places' Islington Square, completed in 2006 and its green-roofed sister development, Guest Street, in 2007. The Guts received £936,000 investment from the HCA.
Urban Splash developed the Chips apartment block in 2009 and a public park, Cotton Field, has been completed.
New paths and cycle ways, a bridge and marina, funded by the NWDA, are also helping the area to take shape.
The Guts, designed by architects MAE, comprises both terraced and semi-detached houses.